Indirect Cost Issues/A-122 Bill Ploog 05 Feb 1998 09:53 EST

I. Indirect Cost Issues for A-122 institutions: I have two questions.

Question #1

As a Director of Administration for a nonprofit organization that is 95%
funded by grants from the US government, I often have questions regarding
indirect cost recovery. But rather than "bore" all of you who are regulated
by A-21 with my questions, I would like to hear from administrators at
nonprofit organizations who would like to become part of a informal list of
"networkers". I would mail my questions and share my list of contacts with
all those who would like to discuss A-122 issues.

Question #2

We are in urgent need of shifting our recovery base from salary and fringe
benefits to modified total direct costs. One problem we face is managing
the transition period when we have grants under the old system and grants
awarded under the new indirect  recovery base. Our auditor insists that we
must treat old awards and new awards exactly the same, i.e., the amount of
indirect costs allocated must observe the principle of equal treatment. So
for example, if we cannot convince a sponsor to allow new indirect costs,
or a shift from direct costs to indirect costs (as an adjustment to bring
the award in line with the new recovery base) we will need to make up the
difference with unrestricted funds of which we have precious few. Any
advice?  Do you know of accounting firms that may be of assistance?

Thank you,

Bill Ploog

William Ploog, Ph.d
Director of Administration
xxxxxx@iscvt.org (work)
xxxxxx@sover.net (home - copy work email)
(802) 229-2900
(802) 229-2919 (fax)
www.iscvt.org